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Warren Buffett (Trades, Portfolio), however, has said on multiple occasions that bonds are generally a poor investment for most people (although he still maintains a portfolio of bonds for ...
Bonds are less risky than stocks, and are among the best low-risk investments. For a bond investment to succeed, the company basically just needs to survive and pay its debt, while a successful ...
In the third calendar quarter of 2012, the share of corporate bonds that were downgraded totaled 1.3% of issuances, flat with the share downgraded in the second quarter. The share that was ...
On March 23, 2009, U.S. Treasury Secretary Timothy Geithner announced a Public-Private Investment Partnership (PPIP) to buy toxic assets from banks. The major stock market indexes in the United States rallied on the day of the announcement, rising by over six percent with the shares of bank stocks leading the way. [ 6 ]
Among the important catalysts of the subprime crisis were the influx of money from the private sector, the banks entering into the mortgage bond market, government policies aimed at expanding homeownership, speculation by many home buyers, and the predatory lending practices of the mortgage lenders, specifically the adjustable-rate mortgage, 2 ...
In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds in order to compensate for the increased risk.
As a publicly traded investment, bonds can fluctuate in value, becoming worth more or less over time. Although bond prices may vary, they are often constrained in how high they can rise.
A conflict of interest between investment management professional and institutional investors, combined with a global glut in investment capital, led to bad investments by asset managers in over-priced credit assets. Professional investment managers generally are compensated based on the volume of client assets under management. There is ...